Ralph Kalner

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF RALPH KALNER, REA DRATH, FREDA ROSTEN, AND ALVIN B. WOLF, TRADING AS DELUXE PRODUCTS COMPANY AND DELCO NOVELTY COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD '1'0 Tile ALLEGED VIOLATIO~ OF SEC. I> OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 . Docket 3634. Complaint, Oct. :22, 1938-Dec-ision, Dec. 9, 1941 Where four individuals engaged at different times as partners In the interstate sale and distribution of bed spreads, pillows, wrist watches, china ware, and a general line of novelty goods in competition with others who were unwilling to and did not use any sales plan involving chance or a lottery in periodicals- ( a) Sold and distributed their said merchandise by means of a game of chance, gift enterprise, or lottery scheme, through sending to tnose replying to their advertisements offering "free" handkerchiefs and beautifying kits, catalogs and circulars describing their various articles and explaining plan under which the particular item of twenty listed, and the price paid therefor, were determined by the legend under the tab of the pull card sele<!ted by customer, and the card operator or distributor was compensated for the sale of chances by the premium selected by him, or, at his option, by the right to retain part of the amount he collected from said sales; Whereby purchasers were Induced to pull the tabs in the hope of receiving arti· cles of merchandise, some of which ordinarily sold at higher prices and were of greater value than the price designated to be paid therefor, determined wholly by lot or chance, as was fact as to which of the twenty" articles purchaser might receive;

With effect of placing in the hands of others devices by use of which their mer· chandise was distributed to the ultimate consumer wholly by lot or chance,. contrary to the established public policy of the United States; and notwitll· standing "Notice to Purchasers" in small print above the pull tab, purporting to advise the reader of his privilege of buying any article at the price shown therefor on the back of each slip, which was inconsistent with the working' of the scheme as planned; ' (b) llep~esented that the price charged for their merchandise was less than tbe· usual retail price through statements in their catalog purporting to offer · "BONUS COUPON-worth 40¢, 50¢ value-Kurl-Kwik Curler for only 10¢" and "BONUS COUPON-worth 65¢, $1.00 valu~Knife, fork and pie server set for only 35¢";

The facts being said curlers ordinarily sold at retail for 10 cents and the sets for 45 cents, their fair values; and (c) Described In their catalog one of their premiums or awards given to their salesmen as "Rogers 26 Piece Silver Set," wh<'reby distributors and prosp<'C· tive purchasers were caused to believe that such merchandise was of solid silver when in fact It was only plated ware; , With effect of misleading and deceiving a substantial portion of the purchasing" public into the erroneous belief that such representations were true, as II DELUXE PRODUCTS CO., ETC. 291 290 Complaint result whereof substantial quantities of their said products were purchased by the public and a number of persons were induced to act as distributors of Its products and trade was unfairly diverted from competitors who do not thus misrepresent their said products:

llela, That such acts and practices were all to the injury and prejudice of the public, and competitors, and contrary to the established public policy of the • United States Government, and constituted unfair methods of competition ln commerce and unfair and deceptive acts and practices therein. Before Mr. Miles J. Fu-rnM, Mr. Randolph Preston, Mr. W. W. Sheppard, Mr. William 0. Reeves and Mr. John W. Addison, trial e:x:aminers.

M'l'. D. 0. Daniel for the Commission.

Nash&: Donnelly, of Chicago, Ill., for respondents. Complaint Pursuant to the provisions of the Federal Trade Commission: Act, and by virtue of the authority vested in it by said art, the Federal 'I'trade Commission, having r&'lson to believe that Ralph Kainer, Rea Drath, Freda Rosten, and Alvin B. Wolf, individually and trading as Deluxe Products Co. and Delco Novelty Co., hereinafter referred to as respondents, have violated the provisions of the said act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: PARAGRAPH 1. Respondents, Ralph Kainer, Rea Drath, Freda Rosten, and Alvin B. 'Volf, are individuals trading under the names of Deluxe Products Co. and Delco N oyelty Co., with their principal office and place of business located at 637 \Vest Roosevelt Road, Chicago, Ill. Respondents are now, and for some time last past have been, engaged in the sale and distribution of watches, rifles, enamel- ~are, bedspreads, blankets, dinner sets, overnight cases, suede Jackets, clocks, salt and pepper sets, pen and pencil sets, hot water bottles, tableware, kitchenware, razor blades, cosmetics, leather wallets, dolls, handkerchiefs, curlers, and other articles of merchandise in conunerce between and among the various States of the United States, and in the District of Columbia. Respondents c3use, and have caused, said products, when sold, to be shipped or transported from their aforesaid place of business in Illinois to purchasers thereof in the various other States of the United States, and in the District of ~columbia, at iheir respective points of location. There is now, and as been for some time last past, a course of trade by said respondents in such merchandise in commerce between and among the various States of the United States, and in the District of Columbia. In Complaint 34F. T.C.

the course and conduct of said business, respondents are in competition with other individuals and partnerships, and with corporations engaged in the sale and distribution of similar or like articles of merchandise in commerce between and among the various States of the United States, and in the District of Columbia. PAR. 2. In the course and conduct of their business, as described in p11.ragraph 1 hereof, respondents sell and distribute said articles of merchandise by means of a game of chance, gift m~t('rprise, or lottery scheme. The respondents distribute or cause to be distributed to dealers and prospective dealers certain advertising literature, including a sales circular. Respondents' merchandise is distributed to the purchasers thereof in the following manner: A portion of said sales,circular consists of a list on which there are designated a number of items of merchandise and the prices thereo:f. Adjacent to the list is printed and set out a 'device commonly called a pull card. Said pull card consists of a number of tabs, under each of which is concealed the; name of an article of merchandise and the price thereof. The name of the article of merchandise and the price thereof are so concealed that purchasers or prospective purchasers of the tabs or chances are unable to ascertain which article of merchan· dise they are to receive or the price which they are to pay until after the tab is separated from the card. 'When a purchaser has detached a tab and learned what article of merchandise he is to receive and the price thereof, his name is written on the list oppo~ite the named article of merchandise. Some of said articles of merchandise have purported and represented retail values and regular prices greater than the prices designated for them, but are distributed to the con· sumer for the price designated on the tab which he pulls. The ap· parent greater values and. regular prices of some of said articles of merchandise, as compared to the price the prospective purchaser will be required to pay in the event he secures one of said articles, indt1ces members of the purchasing public to purchase the tabs or chances in the hope that they will receive articles of merchandise of far greater value than the designated prices to be paid for same. The fact as to whether a purchaser of ,one of saiu pull card tabs receives an article which has greater value and a higher regular price than the price designated for same on such tab, which of said articles of merchandise a purchaser is to receive1 and the amount of money which a purchaser is required to pay, are determined wholly by lot or chance. 'Vlwn the person or dealer operating the pull card r.as succeeded in selling all of the tabs or chances, collected the amounts called for, and rc.mitt€d the said sums to the respondents, the said respondents DELUXE PRODUCTS CO., ETC. 293 2DO Complaint thereupon ship to said dealer the merchandise designated on said card, together with a premium for the dealer as compensation for operating the pull card and selling the said merchandise. Said dealer delivers the merchandise to the purchasers of tabs from ~aid pull card in accordance with the list filled out when the tabs were detached · from the pull card.

Respondents sell and distribute and have sold and distributed various assortments of said merchandise and furnish and have furnished Yarious pull cards for use in the sale and distribution of such merchandise by means of a game of chance, gift enterprjse, or lottery scheme. Such plan or method varies in detail, but the above described plan or method is illustrative o£ the principle involved. PA,R. 3. The dealers to whom respondents furnish the said pull cards use the same in purchasing, selling, and distribut.ing respondents' merchandise in accordance with the aforesaid sales plan. Respondents thus supply to and place in the hands o£ othHs the means of conducting lotteries in the sale of their merchandise jn accordance • ! With the sales plan hereinabove set forth. The use by respondents o£ said method in the sale of their merchandise and the sale of such Inerchandise by and through the use thereof and by the aid of said . method is a practice of the sort which is contrary to an established PUblic policy of the Government of the United States and in violation of criminal laws.

PAR. 4. The sale of merchandise to the purchasing public in the lllanner above alleged involves a game of chance or the sale of a chance to procure an article of merchandise at a price much less than the apparent normal retail price thereof. Many persons, firms, anct corporations who sell or distribute merchandise in competition with .the respondents, as above alleged, are unwilling to adopt and use said . lllethod, or any method involving a game of chance or the sale of a chance to win something by chance, or any method which is contrary to public policy, and such competitors refrain therefrom. Many Persons are attracted by respondents' said method and by the element of chance involved in the sale of such merchandise in the manner above described, and are thereby induced to buy and sell respondents' tnercbandise in preference to merchandise offered for sale and sold by said competitors of respondents who du not use the same or an equivalent method. The use of said method by respondents, because of said game of chance, has the capacity and tendency to, nnd docs, unfairly divert trade and custom to respondents from their said competitors who do not use the same or an equivalent method and as a result thereof substantial injury is being done, and 294 FEUERAL TRADE COMMISSION DECISIONS Complaint 34F. T. C.

has been done, by respondents to competition in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 5. In the course and conduct of their business, as hereinabove related, respondents cause, and have caused, various false, deceptive, and misleading statements or representations to appear in their advertising matter as aforesaid, of which the following are examples but are not all inclusive:

3 Initial handkerchiefs FREE TO You. Send name, address with 6¢ in stamps to help pay postage, packing.

FREE To You. 4-piece beautifying kit sent free to get acquainted. Send name, address with 10¢ to help pay postage, packing. Another of said statements or representat.ions appearing in respon· dents' said advertising matter is as follows: Rogers 26-plece silver set In truth and in fact the said handkerchiefs and beautifying kit are not given away "free" but the purchasers of said articles are required to pay for said handkerchiefs and beautifying kit 6¢ and 10¢ respec· tively, as postage and packing charges, when in fact said amounts are. greatly in excess of the actual cost of said postage and packing. When the word "silver" is used to describe a product, the public understands it to mean that the product is made of solid silver. The use of the word "silver" by re.spondents in describing their tableware causes, and has caused, the public to believe that said tableware· is made of solid silver. Respondents' said silver tableware is not made of solid silver but, on the contrary, said tableware is made of an inferior base metal lightly plated with silver. PAR. 6. In the course and conduct of the respondents' business, as hereinabove set out, the respondents cause, and have caused, coupons to be issued with each purchase of their merchandise made by means of the "pull tab." A number of the said items or articles of merchan· dise described on the aforesaid coupons have values attached to theJll greatly in excess of their true and actual values. Representative of such statements and representations made by the respondents on the coupons regarding the selling price and value ·of the commodities they ~hus offer are the following: BONU.S COUPON. WORTH 40¢ 50¢ valu~Kurl Kwlck Curler-for ov11 ] Of/.

BONUS COUPON. WORTH 6:>¢. $1 vnlu~Knlfe, fork and pie service set-for only 35¢.

BONUS COUPON. WORTH 6:>¢ $1 value-6 fine Initial handkerchiefs-for only 35¢.

DELUXE PRODUCTS CO., ETC. 295 2llo Findings In truth and in fact the curler is not a 50¢ value but is purchased by .the respondents for 5¢ each .and is sold to the retail trade for 10¢ each. The knife, fork and pie server set does not in fact have a. dollar retail value. The initialed handkerchiefs do not have a. dollar retail value but, on the contrary, cost the respondents from 30¢ to 70¢ per dozen. Said coupons are not worth the amounts indicated thereon.

The prices so represented as aforesaid upon respondents' coupons are greatly in excess of the actual selling prices of said items or articles of merchandise by the retailer to the consuming public and are in excess of their true and actual values. The retail prices so represented as aforesaid are false and fictitious and in no sense repre- I sent either the true retail value or the true retail selling price of I j I the articles so represented. I PAR. 7. The use by respondents of the false, deceptive, and mis- I leading statements and representations set forth herein has had, I. and now has, the capacity and tendency to mislead and .deceive, and has misled and deceived, a substantial portion of the purchasing Public into the erroneous belief that such statements and representations are true, and into the purchase of substantial quantities of said respondents' products as a result of such erroneous belie£. There are among the competitors of respondents as mentioned in paragraph 1 hereof manufacturers and distributors of like and similar Products who do not make such false, deceptive, and misleading statements and representations concerning their products. By the · statements and representations aforesaid, trade is unfairly diverted to respondents from such competitors, and, as a result thereof, substantial injury is being done, and has been done, by respondents to competition in commerce among and between the various States of the United States and in the District of Columbia. PAR. 8. The aforesaid acts and practices of respondents, as herein alleged, are all to the prejudice of the public and of respondents' competitors and constitute unfair methods of competition in commerce and unfair and dece.ptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on October 22, 1938, issued and thereafter served its complaint in this proceeding upon the respondents, :Ralph Kainer, Rea Drath, Freda Rosten, and Alvin B. 'Volf, indi- Flndlngs 34: F. T. C. viduals trading as Deluxe Products Co. and Delco Novelty Co., charging them with unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce, in violation ~f the provisions QI said act. After the issuance of the complaint testi· many and evidence in support of the allegations of the complaint were introduced by attorneys for the Commission, and testimony in opposition to the complaint was introduced by attorneys :for respond· ents, before duly appointed trial examiners of the Commission desig· nated by it to serve in this proceeding, and the testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter the proceedings regularly came on for final hearing before the Commission on the complaint, the testimony and other evidence, the report of the trial examiners and exceptions thereto, and briefs filed on behalf of the Commission and of the respondents. And the Commission, having duly considered the matter and being now fully advised in the premises, finds that this proceeding is in the interest of the public and makes this its £ndings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondents, Ralph Kainer, Rea Drath, Freda Ros· ten, and Alvin B. 'Vol£, from the summer of 1936 to about August 1937, were copartners trading as Deluxe Products Co. and Delco Novelty Co., with their principal place of business located at 843 Northwestern Avenue, Chicago, Ill., until May 1937, when it was removed to 637 'Vest Roosevelt Road, in said city. About August 1937 respondent Alvin B. Wolf and one Max Schwartz purchased the interests of respondents Kainer, Drath, and Rosten in said business, and since that date respondent Wolf· and said Schwartz have, as copartners, operated said business at the last named address under the aforesaid trade names and also under the trade name "National Business Builders."

PAR. 2. All the respondents, during the existence of the pa~tner· ship, were engaged, and respondent Wolf and Schwartz have since been and now are engaged, in the sale and distribution of bed spreads, pillows, wrist watches, china ware, rifles, overnight cases, dolls, kitchen ware, blankets, suede jackets, clocks, tableware,· hot water bottles, fountain pen and pencil sets, salt and pepper sets and a general line of novelty goods, and during said periods have caused their mer· chandise, when sold, to be shipped from their principal place of business to purchasers thereof located in the various States of the United States at their respective points of location. DELUXE PRODUCTS CO., ETC. 297 290 Findings · PAR. 3. Respond~nts in the course and conduct of their business 'IV~re, and respondent ·wolf and Schwartz now are, in competition 'IV~th other partnerships and with individuals and corporations likeiV.Ise .engaged in selling and distributing similar articles of merchandise In commerce between and among the various States of the United States.

PAR. 4. Respondents, in order to secure distributors for their merchandise, placed advertisements in magazines of general circulation, of which the- following are typical :

THREE INITIAL HANoKEROIUE~'s FREE TO You. Send name and addre-s with 6¢ In stamps to help pay postage, packing.

FRE;E TO You, 4-piece Beautifying Kit free to get acquainted. Send name and address with 10¢ to help pay postage, packing. · After securing the names and addresses of the persons answering t~ese advertisements, respondents mailed such persons catalogues and Circulars describing the article's of merchandise sold by them and the Plan or method to be used in their sale. The catalogues contained Pictorial representations and descriptive matter with reference to merchandise offered as premiums, rewards, or compensation to the distributor for his services in selling 20 articles of merchandise, 5 tif which are also illustrated in the catalogue, beneath which illustrations is a list of the 20 articles of merchandise to be offered for ~ale, with the price of each article, and a blank space opposite each Item for insertion of the name of the purchaser. At the right of this ~ist is pasted a device commonly known as a "pull card," containing 20 tabs, on the under side of each of which is concealed the name of 1 of the 20 articles of merchandise and the price thereof, neither of Which is revealed until after the tab is separated or removed from the pull-card device.

After the purchaser has detached one of the tabs and has ascertained the article of merchandise he is to purchase, and has paid ~he price indicated on the tab, his name is written by the distributor ln the blank space opposite the name and price of the article listed. When the distributor has by this means sold all of the 20 articles and collected the price thereof, he remits to the respondent the amount eollected and receives from them the merchandise which is delivered ' by him to the purchasers. Respondents also ship to the distributor ~he premium or reward selected by him as compensation for his serv- Ices in the sale of respondents' merchandise; or, if he so elects, the distributor may retain, in lieu of such premium, a specified sum from the amount he has collected from such sales. PAR. 5. Respondents during the existence of the copartnership sold and distributed, and respondent ·wolf since August 1937 has sold and Findings 34 F. T. O.

distributed and now sells and distributes, merch~dise by means of a game of chance, gift enterprise, or lottery scheme, as described in paragraph 4 hereof.

PAR. 6. Immediately above the pull-tab device the following appears in small print:

NOTICE TO PURCHABEBS : On the back ot each sllp ls printed the ·price ot an article. I! after deliberation you decide that you want to buy the article, pa1 the holder of this book the price shown on the slip. If you do not want the article you need not buy it.

Distributors of respondents' merchandise sometimes call the atten· tion of prospective purchasers to this "notice" and at other times do not.

The Commission finds that, regardless of said "notice," the re· spondents have sold and distributed, and respondent Wolf now sells and distributes, merchandise by means of said pull-tab device, in accordance with the sales plan or metho'd hereinbefore described. The successful operation of said sales plan or method is dependent upon the ability of the distributor to sell all of the 20 articles listed, so as to provide for remittance of the required amount to respond· ents in order to obtain the merchandise purchased. The operation of the plan or method strictly in accordance with the above ''notice" would not net the distributor a return sufficient to warrant comple· tion of the plan or metht>d and would thereby render it inoperative. No instructions are contained in any of the catalogues, circulars, or other literature distributed by the respondent as to what should be. done in the event all the articles are not sold, or if a person pulling a tab fails or refuses to complete the purchase; nor is any provision made as to the compensation to be received by the distributor in such cases. On the contrary, as shown by all of respondents' literature, it is contemplated that all of the listed merchandise must be sold. The order blank states:

I have sold my order. Please ship at once all charges prepaid, the 20 artlcle!l of merchan-dise I sold amounting to $5.V8, and one of the valuable premiums. It is stated in th~ catalogue:

When articles are sold you wlll have collected $5.98. Then fill out the enclosed order blank and mall to us together with your remittance. We will send you , big reward premium, extra surprise gift and the 20 articles as soon as we receive your order.

It is stated in one of respondent's circulars: Simply sell the order as outllned and send us the money within 1~ days after receipt of this order and you will get the big reward premium you select • • •. DELUXE PRODUCTS CO., ETC. 299 2!lO Findings The "Notice" is a subterfuge, intended to avoid the consequences in~iclent to the operation of a game of chance, gift enterprise, or lottery scheme.

,par. 7. In the catalogue described in paragraph 4 hereof, it is stated that a "bonus coupon" is given free to each purchaser. The following are examples of these coupons:

" " " Bo~us Coupon, worth------------------------------------------------- 40¢ 50¢ value--Kurl-Kvvik Curler for only---------------------------------- 10¢ Additional Kurl-Kvvik Curlers vvithout coupon--------------------------- 50¢ Bonus Coupon, worth---------------------------------------------- 65¢ $1.00 value-Knife, fork, and ple server set for only---------------------- 35¢

Additional sets vvithout bonus coupons---------------------------------- $1. 00 • • • The values of the curler and the knife, :fork, and pie-server set stated in respondents' "bonus coupons" are greatly in excess of the actual retail selling price of said items and in excess of their true and actual '\Talues. The curler iS' ordinarily sold at retail for 10¢, and the knife, fork, and pie server set for 45¢, and these prices represent the fair '\Talues o:f the articles. These two items have not been sold by respondents since 1938.

Respondents, prior to 1938, described in their catalogue one of the Premiums or rewards given to their distributors as compensation for ser'\Tices in disposing of respondents' merchandise as "Rogers 26-piece Silver Set." This description caused respondents' distributors and Prospective distributors to believe that this merchandise was of solid silver, when in fact it was only plated ware. Respondent 'Wolf has discontinued the use of the word "silver" in describing such ware. PAR. 8. Respondents, by such false, deceptive, and misleading statelhents and representations concerning the value and character of its lherchandise have misled and deceived a substantial portion of the P.ublic into the erroneous belief that such statements and representations are true, and as a result, substantial quantities of their merchandise have been purchased by the public, and a number of persons have been induced to act as distributors of respondents' merchandise. Among the competitors of respondents mentioned in paragraph 3 hereof are those who do not make such :false, deceptive, and misleading statements and representations concerning their merchandise. Said statements and representations have caused trade to be unfairly dil"erted from said competitors to the respondents and substantial injury has thereby been done by respondents, and is now being done by Order 34F. T. C.

respondent ·wolf, to competition in commerce between and among the various States of the United States.

PAR. 9. Some of the merchandise sold by respondents have greater value and ordinarily sell at higher retail prices than the prices listed by respondents, but are sold and distributed to the consumer at the prices designated on the tabs, and because of this, purchasers are induced to pull the tabs in the hope that they will receive articles of merchandise of greater value than the designated prices to be paid for sa,me. ·whether a purchaser receives one of these articles, or which of the 20 articles of merchandise he may receive and the price to be paid therefor, are determined wholly by lot or chnnce. :Many partnerships, persons, and corporations who sell ami distribute merchandise in competition with the respondents are unwilling to adopt and use, and do not use in the sale of their merchandise, the sales plan or method used by respondents, or any method involving a game of chance, gift enterprise, or lottery, or any method which is contrary to public policy. PAR. 10. Respondents, by their sales method hereinbefore described, have placed, and respondent 'Volf now places, in the hands of others, devices to be used in the sale and distribution 'of their merchandise by means of which a game of chance, gift enterprise, or lottery scheme may be used, and by the use of such devices said merchandise was and iR sold and distributed to the ultimate consumer wholly by lot or chance. Respondents' said sales method is contrary to the established public policy of the United States.

CONCLUSION The aforesaid acts and practices of the respondents are all to the prejudice and injury of the public and of respondents' competitors, and are contrary to the established public policy of the Government of the United States of America, and constitute unfair methods of competition and unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the testimony and other evidence introduced before duly appointed trial examiners of the Commission designated by it to serve in this proceeding, the report of the trial examiners thereon and exceptions thereto, and briefs filed in support of the complaint and in opposition to the colnplaint, and the Commission having made its findings as to the facts and its conclusion that the respondents, Ralph Kainer, Rea Drath, Freda Rosten, DELUXE PRODUCTS CO., ETC. 301. 200 Order and Alvin B. Wolk have violated the provisions of the Federal Trade Commission Act:

It is ordered, That the respondents Ralph Kainer, Rea Drath, Freda Rosten, and Alvin B. Wolf, individuals trading as Deluxe Products Co. and Delco Novelty Co., or under any other trade name or designation, jointly or severally, and their respective agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of bed spreads, pillows, wrist watches, china ware, rifles, overnight cases, dolls, kitchen ware, blankets, suede jackets, clocks, tableware, hot water bottles, fountain pen and pencil sets, salt and pepper sets, and any other articles of merchandise, in commerce as "commerce" is defined in the Federal Tracie Commission Act, do forthwith cease and desist from: 1. Supplying-to or placing in the hands of others pull cards or any · other device or devices which are to be used or may be used in the sale and distribution of said merchandise to the public by means of a game. of c·hance, gift enterprise or lottery scheme. 2. Shipping, making, or transporting to agents, or distributors, or to members of the public, pull cards, or any' other device, or devices -Which are to be used or may be used in the ·sale or distribution of said Inerchandise to the public by means of a game of chance, gift enterprise~ or lottery scheme.

3. Selling or otherwise disposing of any merchandise by means of a ' game of chance, gift enterprise, or lottery scheme. 4. Using the unqualified term "silver" to designate or describe table- Ware or other articles of merchandise which are not made entirely of silver.

5. Representing that the price charged for merchandise is less than the usual retail price of such merchandise when such is not the fact. I It i8 further ordered, That respondents shall, within 60 days after service upon them of this order, file with the Commission a report inWriting setting forth the manner and form in which they have com- II Plied with this order. J I I I Syllabus 34F.T.C.